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AUD / USD stabilizes around 0.7900 as investors await Powell’s testimony

  • AUD / USD is struggling to find direction on Tuesday.
  • The US dollar index is holding on to modest recovery gains.
  • The market mood remains bitter ahead of FOMC Chairman Powell’s testimony.

The pair AUD/USD It touched its highest level in nearly three years at 0.7983 on Tuesday, but was unable to preserve its bullish momentum. At time of writing, the pair was down 0.15% on the day at 0.7903.

Safe-haven flows help the USD limit its losses

The USD market valuation continues to drive the movements of the AUD / USD in the absence of major fundamentals. On Monday, the US Dollar Index (DXY) lost 0.4% and closed in negative territory for the third day in a row. The negative shift seen in risk sentiment on Tuesday helps the dollar find some demand and the DXY was last seen rising 0.16% on the day at 90.15.

Reflecting the bad mood of the market, S&P 500 futures were down 0.4%, suggesting that the USD could retain its strength in the second half of the day with major Wall Street indices falling lower after the opening bell. .

Meanwhile, investors are hoping that FOMC Chairman Jerome Powell will deliver his comments in his semi-annual testimony before the Senate Banking Committee. Powell is not expected to change his tune on the political outlook and is likely to reiterate that the Fed will maintain the highly accommodative stance.

Additionally, the February Conference Board Consumer Confidence report will be considered for further momentum later in the session.

On Wednesday, the Wage Price Index for the fourth quarter will be placed on the Australian economic agenda.

Technical levels

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